Weekly Forex Signals

EUR/USD - Next target "1.60" as Euro heading to new record highs.

LONG SIGNAL	SHORT SIGNAL
EUR/USD Buy a break of resistance level at 1.5902 Buy a break of resistance level at 1.6000 Buy a bounce at 1.5735	Sell a break of support level at 1.5735 Sell a break of support level at 1.5600 Sell a failure of breaking the resistance 1.5902

Fundamental

The dollar plunged across the board on Monday as new liquidity-boosting measures launched by the Federal Reserve over the weekend failed to assuage worries about the health of the U.S. banking sector.

The Federal Reserve took more emergency measures to stem the fast-spreading financial crisis, cutting its discount rate on Sunday and opening up discount window lending to major investment banks, a tool not used since the Great Depression.

Technical

Euro still looks set to see an eventual move through $1.60, with a number of channel projections coming in around $1.63-1.65. We should see the $1.57/1.5650 area provide support on the pullbacks.

The Euro may extend its rally to as high as $1.60, based on charts that predict price movements. The Market still is in an uptrend; according to many indicators like RSI, which is giving us a clear bullish signal, MACD breaks the equilibrium level and is pointing upwards, Bollinger gives us a bullish signal by closing the candle above the middle band.